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Entergy makes spinoff concessions for New York

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Posted: Mar 3, 2010 5:05 PM by Brett Troxler
Source: Associated Press

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Topics: Entergy, Enexus, spinoff, stock, electricity, energy, New York, Louisiana

Entergy has agreed to financial concessions in an attempt to win approval from New York regulators for its proposed spinoff of six nuclear units.

The New York State Public Service Commission will consider Thursday whether to allow the New Orleans-based Entergy to create a separate, publicly traded company known as Enexus Energy Corp. The company would take over Entergy's reactors that generate electricity on the wholesale market in a few areas in New York, and also units in Massachusetts, Vermont and Michigan.

"We're offering to cut debt, improve liquidity and share revenue," said Entergy spokesman Mike Burns of the concessions. "It will strengthen Enexus and protect the long-term interests of New York residents."

The commission recommended rejection of the spinoff on Feb. 11, saying Entergy's proposal was not in the public's best interest because the new company would be saddled with too much debt.

The spinoff plan was announced in late 2007.

Entergy also has regulated utilities in Louisiana, Mississippi, Texas and Arkansas.

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